AM Comments 10/29/15
Thursday, October 29, 2015, 8:10 AM
Submitted by: Eric Kist
Overnight markets were quiet again, with corn up half a cent after trading in a narrow 1-cent range, and soybeans down a penny. Weekly export sales numbers released this morning should provide a bit of a spark to the market, as corn, soybeans, and wheat sales were all reported to be above expectations, and all were also above last week’s sales numbers. A lower Dollar today will also try to offer support to grains, as the $ Index is on the defensive this morning after the Fed left interest rates unchanged (but once again left the door open to higher rates in the next meeting in December).
South American weather forecasts may put a damper on any strong move upward today, as the major agricultural-producing areas of Brazil and Argentina are expected to receive some needed rains in the coming 7-10 days.
News out of China this morning is that the Chinese government has agreed to end its long-standing policy of only one child per family, in an attempt to spark future economic growth and replenish the labor pool. Going forward, all families will now be allowed to have two children. Longer term, this should become friendly for ag exports, as Chinese demand for protein will grow alongside an increasing population.
Corn: 1-2 higher
Have a great day!